Additional Protection for Your Home Insurance Policy
Most homeowners will purchase a standard home insurance policy. These policies include coverage for destruction or damage to the interior and exterior of the property, theft, and personal liability for harm to others and their property. But what about coverage for repairing and replacing underground service lines?
Utility lines are the pipes and cables that run in the ground underneath your home. These include water lines, electrical cables, data cables, natural gas pipes, and sewer lines. They deliver utilities such as running water to flush your toilets, natural gas to heat your home, and electricity to turn the lights on. Any interruption to these services can cause a major headache and disruption to your family life.
As a homeowner, you are financially responsible for the servicing and maintenance of any utility lines that lie directly under your property. You are also liable for any damage to your property as a result. This can result in costly repairs, with you, the homeowner, having to foot a very large bill.
What Is Utility Line Insurance?
Utility line insurance is a type of additional coverage that protects you from the financial cost of damaged utility lines. This type of insurance is known as a rider, which you can choose to add onto your standard home insurance policy for as little as thirty to fifty dollars.
What Damage Does Utility Line Insurance Cover?
Utility line insurance provides a wide range of coverage. This includes damage to underground pipes and wiring, such as:
- Sewer lines
- Water pipes
- Drain pipes
- Powerlines or electrical wiring
- Geothermal plumbing or ground loop piping
- Communication or data transmission wiring (phone, internet, and cable)
What Type of Costs Will Utility Insurance Cover?
While your individual policy will outline the type of coverage, maximum limits, and deductibles, most utility line coverage will include several homeowner costs. Since policies vary and can include exclusions, it’s important to talk to your insurance broker about what is and is not covered. The most common utility line coverages include:
Fixing and replacing broken pipes and cables often involves digging up areas of your property. This may include disturbing landscaping or, even worse, using a jackhammer to dig through concrete or your home’s foundation. This type of work tends to be costly and can last several days.
Once the damaged pipes have been fixed or replaced, you will need to restore your yard after the excavation. Landscaping costs will help to reinstall paving, grass, trees, and shrubs that may have been disturbed as a result of fixing the damage.
Reimbursement For Loss of Use
In extreme cases, the damage might be such that you have to move out of your home. While this is inconvenient, it can also be expensive, with hotel and grocery bills adding up over time. Utility line coverage often provides homeowners with reimbursement for hotel and temporary living expenses while the lines are being repaired.
Utility Line Improvements
Utility line insurance may also cover requirements for additional work in order to meet minimum environmental, safety, and efficiency standards.
What Is Not Covered by Utility Line Insurance?
While utility line coverage is generally very comprehensive, it will not cover any incidents that result from negligence or accidents. In some cases, utility line coverage may also remove exclusions for wear and tear of utility lines.
For more detailed information about what is covered by your policy, it is important to consult with your insurance broker or insurance company directly and check the policy terms for each individual insurer.
Who Should Get Utility Line Insurance?
Many people wonder if utility line insurance is worth the cost. When you consider that many homes in Edmonton were built in the 1950s and 60s, they are sitting on top of pipes and cables that are potentially up to 70 years old. That is a lot of wear and tear over the years that can result in high financial costs if things go wrong. If you own a home, you should definitely consider purchasing utility line insurance. This type of insurance is not costly and can provide you and your family with peace of mind.
How Much Does Utility Line Insurance Cost?
The financial cost of dealing with a burst water pipe is very high in comparison to the cost of purchasing utility insurance. For between $30 to $50 a year, depending on the insurer, you can get $10,000 of service line coverage. This insurance is in addition to your existing homeowner’s insurance policy.
Extra coverage above $10,000 can also be purchased at an additional cost. Check with your insurance provider for more information and to find the optimal level of utility line coverage for your home.
What Are The Coverage Limits and Deductibles?
Like most types of insurance policies, utility line insurance is also subject to coverage limits and deductibles. A coverage limit is the maximum amount of money that the insurance company will pay on a claim. So if your coverage limit is $10,000 and the cost of repairs is $6,000, the insurance company will cover your total costs.
If, however, your coverage has a deductible of $500, then your insurance company will only pay $5,500. The deductible of $500 is your contribution towards paying for the repair costs.
Coverage limits and deductibles vary according to the insurance company, so check with your insurance provider for more information.
Purchase Utility Line Insurance in Edmonton
At Cornerstone Insurance, we are committed to providing reliable information about the type of insurance coverage that may be beneficial to you. We understand the concerns that you may have and are happy to discuss possible solutions for you. Call us and talk to one of our insurance brokers today.